TransUnion CIBIL, in collaboration with NITI Aayog’s Women Entrepreneurship Platform (WEP), has launched Seher, a transformative initiative aimed at enhancing the financial literacy and business skills of women entrepreneurs. The initiative, a crucial part of WEP’s Financing Women Collaborative (FWC), focuses on improving financial awareness, credit management, and building a robust credit history for women entrepreneurs. This initiative is a significant step towards empowering women in business and supporting India’s economic growth.
Enhancing Financial Literacy and Business Skills
Seher is designed to equip women entrepreneurs with the necessary knowledge and skills to navigate the financial landscape effectively. Anna Roy, Mission Director of WEP and Principal Economic Adviser at NITI Aayog, emphasized the importance of financial knowledge for business growth. “To get timely and better access to finance for business growth, entrepreneurs must gain knowledge on all aspects of finance, including their CIBIL Rank and commercial credit report,” she stated.
The initiative aims to demystify financial concepts and tools, enabling women entrepreneurs to make informed decisions about their businesses. By understanding their credit scores and how to manage credit effectively, women can enhance their ability to secure loans and other financial services essential for business expansion.
Addressing the Demand for Business Loans
TransUnion CIBIL’s data reveals a significant increase in the demand for business loans among women entrepreneurs. Between FY2019 and FY2024, the demand for business loans by women surged over 3.9 times, while the number of women borrowers increased by 10 per cent. As of March 2024, women comprised 38 per cent of the 1.5 crore borrowers with active business loans.
This surge in demand underscores the growing entrepreneurial spirit among women in India. However, accessing finance remains a challenge for many. Seher aims to bridge this gap by providing women with the tools and knowledge needed to improve their creditworthiness and financial management skills.
Driving Business Growth through Credit Awareness
Rajesh Kumar, MD and CEO of TransUnion CIBIL, highlighted the direct correlation between business growth and credit access, awareness, and financial literacy. “We aim to propagate financial knowledge and improve the skills of women entrepreneurs so that they can manage their businesses successfully to achieve sustained growth. This program will also help support India’s $5 trillion economy goal as more and more women are empowered to start and grow their businesses profitably,” he said.
The Seher initiative will focus on imparting practical knowledge about financial management, credit building, and loan acquisition. By enhancing credit awareness, women entrepreneurs can better understand the factors that influence their credit scores and take proactive steps to improve them. This, in turn, will increase their chances of securing loans at favorable terms, thus driving business growth.
Supporting a $5 Trillion Economy
The Seher initiative aligns with India’s broader economic goals. By empowering women entrepreneurs, the program supports the country’s ambition to become a $5 trillion economy. Women entrepreneurs play a crucial role in this vision, contributing significantly to employment generation, innovation, and economic development.
Last month, the MSME Ministry launched the Yashasvini campaign to support 1 lakh women entrepreneurs in smaller cities with skilling and capacity building. This campaign, coupled with the Seher initiative, creates a robust support system for women entrepreneurs, fostering an environment where they can thrive and contribute to the nation’s economic growth.
Building a Strong Credit History
One of the key components of Seher is helping women entrepreneurs build a strong credit history. A good credit history is essential for accessing financial services and securing loans. The program will provide guidance on maintaining a healthy credit score, understanding credit reports, and managing debt effectively.
By building a strong credit history, women entrepreneurs can enhance their financial credibility, making it easier to access capital for business expansion. This is particularly important for early-stage entrepreneurs who may not have an extensive financial track record.
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The Path Forward
The Seher initiative marks a significant step forward in empowering women entrepreneurs in India. By enhancing financial literacy, improving credit awareness, and providing practical skills, the program aims to create a more inclusive and supportive environment for women in business.
As more women entrepreneurs gain the knowledge and tools needed to succeed, they will play a pivotal role in driving economic growth and innovation. The collaborative efforts of TransUnion CIBIL, NITI Aayog, and other stakeholders are instrumental in shaping a future where women entrepreneurs can thrive and contribute to the nation’s prosperity.
In conclusion, Seher is not just an initiative; it is a movement towards financial empowerment and business success for women entrepreneurs in India. With the right support and resources, women can overcome financial barriers, achieve their business goals, and drive the country’s economic growth. This initiative sets the stage for a brighter, more inclusive future for Indian women in business.